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Buying a Concrete Contractor business
Published · Reviewed by The Diligence Standard Team · Updated
a Concrete Contractor can look attractive on a summary P&L while the operating details underneath it change the cash flow, transferability and capital a buyer will actually own. Diligence should connect the reported earnings to the business-specific drivers that create them.
How the business works
Backlog quality, crew productivity, equipment utilization, material pricing and project estimating determine earnings; rework, weather and WIP can create large swings.
Risks to test
- Underpriced backlog
- Weather-driven delays
- Equipment replacement
- Crew dependence
- Retainage/AR exposure
- Owner estimating dependence
Evidence to request and reconcile
- Backlog/WIP
- Job-cost reports
- Equipment schedule
- Crew payroll
- AR/retainage aging
- Change-order/rework history
Decision questions
- What portion of backlog is truly profitable?
- How often do material/labor costs exceed estimate?
- What equipment CapEx is coming?
- How much cash is trapped in retainage?
- Who can estimate without the owner?